Investing in the home country has been a wish of many NRIs. But, the entire process of getting started can be daunting. Filling out forms, complying with the Know Your Customer (KYC) norms, and attestations have been demotivating for many.
The entire process can now be completed from the comfort of your home, thanks to online investing. But before you invest, you must be KYC compliant. It is mandatory for all - Indian residents and NRIs.
The best part is you can do it online without having to run around financial institutions. Let's get your KYC sorted and start investing without any further delay.
What is Know Your Customer (KYC)?
KYC is a process through which financial institutions validate your legitimacy. To undergo this verification, you must submit all the necessary KYC documentation (list follows) before investing in India.
The Reserve Bank of India (RBI) mandates all financial institutions to conduct the KYC process for every customer (including NRIs) before granting permission to engage in any financial transactions.
But why is KYC important for NRIs? KYC helps verify your identity, assess potential risks, prevent fraud, and comply with legal and regulatory requirements. For investing in India, it is mandatory for you to be KYC compliant.
KYC is a crucial tool in overseeing financial entities and curbing unlawful activities.
You can choose online KYC verification or prefer the offline option; it is a straightforward and one-time procedure. Doing it online will save you a lot of time and effort. Let's see how you can do it using iNRI.
How Can NRIs do their KYC on iNRI?
iNRI helps you invest in Indian mutual funds in the easiest and most convenient way. The entire process is completely online. Here's how you can complete your KYC and start investing in mutual funds:
Step 1: Visit the iNRI website
Step 2: Login/ Signup using your email ID
Step 3: Verify by confirming the link sent to the given email.
Step 4: Once logged in, you’ll find the KYC section where you can begin the process. Make sure you download and keep the required forms ready (KYC Form, FATCA Form, and Declaration Form) as part of the compliance process.
Step 5:Enter your PAN number to check whether your KYC status is already updated. If not, you’ll be guided to complete the necessary compliance by clicking on ‘Complete KYC’.
Step 6: On your iNRI dashboard, click on the ‘Initiate KYC’ button. Before proceeding, ensure you have all your latest self-attested documents handy for upload and review. The checklist will walk you through the forms and supporting details required.
Step 7:Provide your residential address details and upload scanned copies of your documents. Once your documents are reviewed by the team, you will be guided on the final validation step. For clarity on how to prepare and submit your documents correctly, you can refer to this quick guide.
Step 8: After submission, your KYC request will be initiated. You’ll receive timely updates on its progress. If there’s any discrepancy or need for additional documentation, you will be notified by email for clarity and quick resolution.
Upon successful verification of your KYC documents, you can start your investment journey. But before that, complete your investor profile, add nominee details and bank details.
What are the Documents Required for NRI KYC?
Here’s the checklist of documents you should keep ready for a smooth KYC process:
- Recent Passport-size Photograph
- PAN Card Copy
- Passport (front and back)
- Overseas Citizen of India (OCI) Card, if applicable
- Current Valid Address Proof (Driver’s License, Bank Statement dated within 1 month, Rental Agreement, or Utility Bill within 1 month)
- Aadhaar Card (if available, for faster validation)
- Indian Mobile Number linked with Aadhaar (if available)
Note: All documents must be self-attested before submission.
How to Change Your KYC Status to NRI?
If you currently have a KYC status as a resident Indian and wish to switch it to NRI, you can simply follow the above mentioned steps to change your KYC status.
It's crucial to update your KYC status promptly after becoming an NRI to ensure that your mutual fund investments comply with regulations.
How Can NRIs Update KYC Details?
You can update your KYC details through a KRA.
Also, as per the guidelines laid down by the RBI, all banking institutions have to update their account holders' customer identification details periodically. During these times, account holders need to undergo re-KYC and submit the necessary documents.
Conclusion
Being KYC compliant means you can now invest in any mutual fund in India. You do not have to repeatedly keep doing your KYC each time you choose to invest in a new mutual fund.
Once done, you are all sorted.
At iNRI, we are happy to help you with your KYC process and mutual fund investing. It's pretty straightforward, but in case of any hiccups, feel free to get in touch with us.
Before diving into mutual fund investments, it's useful to understand how elections impact the market. Read our blog on What Happens to Indian Stocks Before General Elections? for more details.
KYC for NRIs Investing in Mutual Fund and Stocks: Frequently Asked Questions (FAQs)
How do I know my KYC Status?
You'll know the KYC status when you enter your PAN on our website.
Can NRIs invest in mutual funds in India?
Asset Management Companies (AMCs) allow NRIs to invest in Indian mutual funds. You must adhere to the Foreign Exchange Management Act (FEMA) rules. However, there are restrictions for US and Canada NRIs. Also, you must be KYC compliant to start investing in mutual funds.
Is a PAN card needed for KYC?
Yes, a PAN card is necessary for KYC.
Can NRIs complete their KYC without going to the bank?
Yes, NRIs can complete their KYC without going to the bank. With online KYC procedures, you can complete the process from the comfort of your home. You must upload all the necessary documents and submit an in-person verification video.
What are the advantages of completing KYC?
Upon completing your KYC, you can make multiple investments in various stocks and mutual funds using the same KYC. Learn How Can NRIs & OCIs Invest In Indian Mutual Funds Through iNRI.
In case you need to update your address across all your mutual fund investments, you don't have to do it individually for each. Simply updating it in your KYC profile will automatically apply the change to all your mutual fund folios.
How to Check NRI KYC Status?
You can check your KYC status through any KYC Registration Agencies (KRA). Just enter your PAN number and verify by entering the captcha to check your KYC status. For example, you can visit the CAMS KRA website, and enter your PAN number to track the status.
